Together we face extremely challenging and difficult times
Category Advice
During this unprecedented 'lockdown' period in South Africa, we together face extremely challenging and difficult times which affect all role players in our property industry. None more so than our commercial landlords and tenants especially given that the lockdown was extended to 30th April and will continue at varying levels during the risk-adjusted reintegration.
In particular, restaurants, bars, retail premises (non-medical and food suppliers) and offices have almost all been forced to close and, where possible, discover how to work remotely or reinvent their business models. Many tenants had already seen a slowdown in trade before the lockdown began, with reduced trading hours and foot traffic.
Commendably, as soon as the 'lockdown' was announced, we saw a proactive reaction of empathy and understanding from our clients being the majority of both landlords and tenants. Steer and Co assisted discussions between lessors/lessees to achieve workable solutions so that tenancies could endure wherever possible in such challenging times and so that our lessors could have long term, sustainable rental income.
Each situation has been individually considered and is dependent on a variety of criteria from type of business, length of lease, payment histories and is facilitated by Steer & co using these parameters. Lessors' financial obligations (rates, insur. prems., utility charges, etc) remain a large factor through this period, although they are the first stop for lessees seeking temporary concessions.
However, given the many initiatives set up for businesses/lessees to seek assistance, we urge distressed tenants to explore those avenues first, where assistance and/or finance is available to businesses adversely affected by the lockdown. Websites such as the following are recommended: https://www.supportbusiness.co.za/
Encouragingly, we have found the majority of our client base managing to maintain rental payments through this period and this trend is hugely appreciated by lessors and ourselves alike, given the above data related to lessor commitments.
We look forward to working with all of our clients in facing up to this scenario.
Author: Zane Franklin
